The white substance was entering the drain where the man was stripping paint from a building on Vincent Street.

An EPA investigation found the drain to be connected to nearby Doctors Gully Creek, but no white substance was found in the creek waters.

EPA’s North West Manager Dr Scott Pigdon said it was unknown how much of the paint stripper and residue entered the storm-water system.

“Paints and paint strippers can cause major environmental problems if they get into the storm-water system because they are highly toxic materials that can threaten aquatic life,” he said.

The man, who was hired to strip paint off a building on Daylesford’s main street, has been hit with a fine of almost $2,000 for causing the environmental hazard.

Mr Pigdon said the toxic materials were not handled responsibly.

“The individual in this matter did not have adequate capture and controls measures in place nor did he take it upon himself to research the product and familiarise himself with correct handling and disposal procedures,” he said.

“This pollution incident caused a high level of public interest and EPA would like to thank the community member for making a report.”